Canada’s retirement programs OAS and CPP have a much better setup than Social Security in the US.
Latest Blog Posts
Dollar Cost Averaging: Don’t Stop Buying On the Way Down
Dollar cost averaging means investing a set amount on a schedule, for example $500 a month every month. Dollar cost averaging isn’t the same as periodic investing. Dollar cost averaging means you have the cash to invest in a lump sum now but you choose to phase in your purchases over time. Periodic investing means […]
In-Service Withdrawal: The Law and The Plan Rules
It’s a sad fact many 401k plans are bad: the investment choices are poor; the fees are high. People naturally ask if there’s a way to take the money out of the plan to their own account. We all know when you leave your job, you can. It’s called a 401k rollover. In most cases […]
Who Is A Millionaire?
I hear people use the word millionaire, but I’m not sure what exactly it means. For example, President Obama said in his latest State of the Union address, “Before we take money away from our schools or scholarships away from our students, we should ask millionaires to give up their tax break.” Who exactly are […]
Social Security Family Benefits Mess
Most of people think of Social Security as a government managed savings program similar to a 401k plan: you pay into the system when you are working; you draw from the system when you retire. More informed people will point out it isn’t so. It’s a pay-as-you-go inter-generation transfer program. The money you (and your […]
Claiming Parent As Dependent On Tax Return
Reader Bill asked me if it’s possible to list his parents as dependents on his tax return. Bill’s parents are foreign citizens. They came to visit him and lived with him for eight months last year. We are all familiar with children as dependents. Can parents also be dependents for tax purposes? I consulted my […]
More From Argentina: Middleman and Consumption Smoothing
For those keeping track, I’m happy to report that I’m writing this from safety in Argentina. I, together with some other foreign tourists, got out of the literal tourist trap set by the Chilean protestors by walking 6 hours, refugee style, to the Argentina border. We successfully crossed two blockades before we reached the border. […]
How To Call US Toll Free Numbers From Overseas
When you are overseas you can still call US toll-free number free of charge, only if you know how.
Timing Mutual Fund Purchases Around Year-End Distributions Backfired Again
Financial advisor Allan Roth has a pet peeve against the Associated Press’s habit of reporting the raw S&P 500 index changes as if they are the U.S. stock market returns. He argues the true U.S. stock market returns should (a) include dividends; and (b) include small caps. I agree with him, but the media don’t […]
The Best Way to Use a Donor Advised Fund
Speaking of donating appreciated shares to charities, I read a great article by Nickel at FiveCentNickel.com about using a donor advised fund as an alternative to donating shares directly to each individual charity. Donor Advised Fund In a Nutshell A donor advised fund lets you do time-shifting. You donate and take the tax deduction now. […]